Question

Select the best answer for each of the following multiple-choice items dealing with not-for-profit organizations:
1. Which of the following criteria would suggest that a not-for-profit capitalize its works of art, historical treasures, or similar assets?
a. They are held for public inspection, education, or research in furtherance of public service rather than financial gain.
b. They are protected, kept unencumbered, cared for, and preserved.
c. They are subject to be used in the acquisition of other items for the collection.
d. They are held primarily to be resold for financial gain.
2. Securities donated to voluntary health and welfare organizations should be recorded
a. At the donor’s recorded amount.
b. At fair value at the date of the gift.
c. At fair value at the date of the gift or the donor’s recorded amount, whichever is lower.
d. At fair value at the date of the gift or the donor’s recorded amount, whichever is higher.
3. Which of the following is not a criterion that must be met under FASB ASC 958-605-25-16 for contributed services?
a. They are provided by persons possessing required skills.
b. They are provided by licensed professionals.
c. They create or enhance nonfinancial assets.
d. They would typically have to be purchased if not provided by the donors/volunteers.
4. Which of the following factors, if present, would indicate that a transaction is not a contribution?
a. The resource provider entered into the transaction voluntarily.
b. The resource provider received value in exchange.
c. The transfer of assets was unconditional.
d. The organization has discretion in the use of the assets received.
5. Which of the following statements is true?
a. All not-for-profit organizations must include a statement of functional expenses.
b. Donor-restricted contributions whose restrictions have been met in the reporting period may be reported as unrestricted support.
c. Statements should focus on the individual unrestricted and restricted funds of the organization.
d. FASB ASC 958-605 contains requirements that are generally more stringent than those relating to for-profit organizations.